WallStSmart

Johnson & Johnson (JNJ)vsRigel Pharmaceuticals Inc (RIGL)

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Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 32645% more annual revenue ($96.36B vs $294.28M). RIGL leads profitability with a 124.7% profit margin vs 21.8%. RIGL trades at a lower P/E of 1.6x. RIGL earns a higher WallStSmart Score of 79/100 (B+).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

RIGL

Strong Buy

79

out of 100

Grade: B+

Growth: 9.3Profit: 10.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued
RIGLUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$294.92

Current Price

$29.22

$265.70 discount

UndervaluedFair: $294.92Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

RIGL6 strengths · Avg: 10.0/10
P/E RatioValuation
1.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
185.9%10/10

Every $100 of equity generates 186 in profit

Profit MarginProfitability
124.7%10/10

Keeps 125 of every $100 in revenue as profit

Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

EPS GrowthGrowth
1599.0%10/10

Earnings expanding 1599.0% YoY

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

RIGL1 concerns · Avg: 3.0/10
Market CapQuality
$564.75M3/10

Smaller company, higher risk/reward

Comparative Analysis Report

WallStSmart Research

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.

Bull Case : RIGL

The strongest argument for RIGL centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 124.7% and operating margin at 33.2%. Revenue growth of 21.2% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : RIGL

The primary concerns for RIGL are Market Cap.

Key Dynamics to Monitor

JNJ profiles as a mature stock while RIGL is a growth play — different risk/reward profiles.

RIGL carries more volatility with a beta of 1.27 — expect wider price swings.

RIGL is growing revenue faster at 21.2% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

RIGL scores higher overall (79/100 vs 59/100), backed by strong 124.7% margins and 21.2% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Johnson & Johnson

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.

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Rigel Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Rigel Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs to treat blood disorders, cancer, and rare immune diseases. The company is headquartered in South San Francisco, California.

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